"With all my love for the Minister of Finance, the tax on electricity companies cannot be created with the Budget Law"

“Act now” with a specific legislative instrument or entrust it to a future Budget Law. The Second Vice President and Minister of Labor is committed to the former, to approve a new tax figure that taxes the multimillion-dollar and record profits of the companies that are making a killing with the energy crisis. The socialist part of the Government, however, is committed to the second option, as evidenced in a debate attended by Vice President Yolanda Díaz and Minister María Jesús Montero this Wednesday in Seville.

The head of the Treasury stated that "the decree laws cannot implement measures of this type of new fiscal figures, therefore the most appropriate vehicle must be found", while the third vice president and minister of Ecological Transition, Teresa Ribera, pointed out that the debate on this tax should be framed in the negotiation of the General State Budgets, a thesis shared by the head of the Treasury. “Everything in its time”, indicates Ribera.

However, apart from the fact that the new budgets depend on many factors that are difficult to foresee so many months in advance and on negotiations with multiple parties, the second vice president, Yolanda Díaz, gave this Thursday in Luxembourg one more argument in favor of her thesis and against the one defended by Teresa Ribera and María Jesús Montero: “It is not possible to create this tax through the General State Budget Law. And it is not possible, simply, because article 134, section seven, of the Spanish Constitution, prevents it. Therefore, with all my love for the Minister of Finance, I have to tell her that it is not possible to create this tax through the General Budget Law”.

doAnd what does that article 134, section seven of the Constitution say?? “The Budget Law cannot create taxes. You can modify them when a substantive tax law so provides.”

“The main problem we have at the moment is inflation, which is impoverishing the whole world”, Díaz said in Luxembourg at the entrance of a council of EU Labor officials: “The impact it is having with the classes popular, working and media is very strong. Therefore, we believe that we must act promptly to mitigate its negative effects and what we are saying is that we act now, that we legislate and put this mechanism into operation. It is urgent that we do so."

The second vice president has insisted on the tax reform, flag of United We Can within the agreement of the coalition government: “We have spent many months, almost since the beginning of the legislature, with the tax debate that is always moving away. But in this case I do want to clear up the unknown. It is not possible to create this tax through the General State Budget Law, by pure constitutional mandate. We are right and we must legislate immediately to create this tax figure, which serves to compensate for the way out of this crisis. The debate is how we get out of this crisis, who pays and who contributes more. And it seems to me that, in this case, the constitutional mandate must become a reality. Therefore, I am sorry to say to my dear María Jesús [Montero] that it is not possible to do it through the General State Budget Law”.

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